Can I Demand an Accounting from the Trustee of a Trust in Ontario?

Being a beneficiary and hearing nothing is frustrating. You may not know what the trust owns, what has been spent, or when you will receive anything. Many beneficiaries wonder whether they can simply demand a full accounting.

The short answer is that there are usually steps you can take, starting with a written request and, if needed, a court process. This article explains the practical path and the points that are supported by Ontario sources. Whether you qualify to compel an accounting, and how, depends on the document and your role in the trust, so it is worth confirming with a lawyer.

What an accounting is and why it matters

An accounting is a record of what the trustee received, what the trustee paid out and what remains. It normally covers the assets at the start, income, expenses, distributions and the balance at the end. A trustee who has kept good records can usually produce one without much difficulty.

In an estate, the trustee's job is to collect assets, pay taxes and debts and distribute the remainder under the will and the law. An accounting is how a beneficiary can see whether that happened.

Start with a written request

Before anything formal, ask in writing. Many problems come from poor communication rather than bad conduct, and a letter that sets out what you want and a reasonable date can resolve things. Keep a copy and note any replies.

• Ask for a list of the trust's assets and debts.
• Ask for bank and investment statements covering the period in question.
• Ask for a summary of money received, money spent and any payments to the trustee.
• Ask for copies of the T3 returns and any T3 slips issued for the trust.
• Ask when you can expect a distribution, and what is holding it up.

A T3 slip is useful but limited. Income allocated to beneficiaries is included in their income and deducted from the trust's income, and it is reported on T3 slips. The slip tells you what is taxable to you; it does not show what the trust owns or spends.

When informal requests do not work: passing of accounts

If the trustee will not respond, the court process is an application to pass accounts. The Office of the Children's Lawyer must be served on an application to pass estate accounts where a minor or an unborn or unascertained person has an interest.

Who may start the process, what documents must be filed and what the timelines are come from court rules that should be checked with a lawyer for your case. Court steps take time and cost money, so it helps to weigh them against the amount involved.

When children or unborn beneficiaries are involved

The Office of the Children's Lawyer may act for children under 18 or unborn persons. It can ask an estate trustee for accounts and supporting records, and if the trustee does not respond or the accounts raise concerns it may ask the court for an order requiring the estate trustee to bring an application to pass accounts.

If you are an adult beneficiary in an estate where a minor also has an interest, the OCL's involvement may mean the accounts get a closer look than they otherwise would. That can be helpful, but it can also add time.

What to do next

• Collect the will or trust document, any letters from the trustee and anything that shows your interest.
• Write down what you know about the assets, and what you have been told.
• Send a polite written request for records, with a reasonable deadline.
• Keep a log of calls, emails and replies.
• Note whether any beneficiary is a minor or not yet born, since that affects who must be served.
• Speak with a lawyer before starting a court application so you understand cost, timing and the likely response.

Frequently asked questions